Date: 13 May 2011

GC Rieber Shipping - First quarter 2011


GC Rieber Shipping is optimistic about the further development in 2011. "All the company's vessels are now on relatively long contracts, which will contribute to solid and stable earnings going forward. In addition, we consider the outlook to be good in our market segments from 2012", says CEO Irene Waage Basili. She is also satisfied with the progress on the fleet renewal, which will soon be completed. "This makes us well positioned for the future and new projects".

 

GC Rieber Shipping had operating income of NOK 100.5 million in the first quarter, which is on par with the previous quarter, but NOK 60.1 million below the corresponding quarter last year. EBITDA amounted to NOK 26.8 million, which is a NOK 16.3 million improvement on the previous quarter. EBITDA in the first quarter 2010 was NOK 52.3 million. Structural changes in subsidiaries, as well as sale of a vessel in 2010, are main factors behind the reduction in operating income and EBITDA compared to the first quarter 2010. The organic decline in activity as compared to last year was primarily related to low utilisation for one of the company's vessels in the first quarter 2011.

 

Net loss after tax and non-controlling interests amounted to NOK 22.3 million, as compared to a profit of NOK 29.6 million in the first quarter 2010. The net loss in the fourth quarter 2010 amounted to NOK 144.3 million. The loss in the fourth quarter 2010 included a tax provision of NOK 52.7 million related to entrance into to the settlement regime for the group's Norwegian tonnage taxed companies. "We will never be satisfied with a net loss, but we have now built a platform for positive development of our business going forward", Irene Waage Basili summarizes.

 

GC Rieber Shipping's value chain investments, activities which are complementary to the shipowning business, still have challenges in the market. The share of loss from GC Rieber Shipping's associated company Reef Subsea amounted to NOK 25.4 million in the first quarter 2011, an improvement of NOK 15.7 million over the fourth quarter 2010. The continued negative contribution is primarily due to low earnings in the subsidiary Bluestone Offshore, which was sold to Fugro in April 2011.  In addition Technocean, another subsidiary, had low earnings due to financial problems for one company's clients. The attention from governmental authorities to environmental monitoring of offshore activities is increasing. This increases the interest for permanent reservoir monitoring; which may have a positive effect on the demand for Octio's products and services.

 

GC Rieber Shipping has increased the contract backlog by approximately NOK 100 million during the first quarter. As at 31 March, the contract backlog amounted to NOK 1,871 million. Average contract duration is three years. The contract coverage for the years 2011-13 is 79%, 72% and 69%, respectively. In addition comes the clients' options.  

 

Two further vessels in the company's investment programme have recently been delivered and have commenced on charters. The fleet renewal, with an investment totalling NOK 1.9 billion, will be completed during the next 12 months with delivery of one further subsea vessel and a high capacity seismic vessel. "We have invested at favourable points in time and we are well positioned to take advantage of the positive market outlook", Basili concludes.

 

Key financial figures for the first quarter 2011:

 

For further information, please contact:

 

CEO Irene Waage Basili, phone +47 55 60 68 67, or +47 90 09 86 88
CFO Hans Petter Klohs, phone +47 55 60 68 24, or +47 90 75 05 26

 

 

About GC Rieber Shipping:
GC Rieber Shipping's business within offshore/shipping includes ownership in specialized vessels, high quality marine ship management, project development and industrial portfolio management within the segments subsea, ice/support and marine seismic. The group has a unique competence in offshore operations in harsh environments as well as design, development and maritime operation of seismic vessels. Through strategic value chain investments the group has substantial knowledge and experience within subsea and marine seismic.

 

GC Rieber Shipping currently owns eight and operates nine advanced, multifunctional special purpose vessels for defined markets within the subsea, ice/support and marine seismic segments. GC Rieber Shipping has one subsea IMR/CSV newbuilding for delivery in 2011. GC Rieber Shipping also owns 65 % of Armada Seismic, which owns one high-capacity seismic vessel and has one newbuilding for delivery in the first quarter 2012. The group's strategic value chain investments include the subsea services company Reef Subsea (50 % stake) and the company Octio (73 % stake), which is in the business of permanent reservoir monitoring. GC Rieber Shipping also manages offshore vessels for other owners.

 

The company has its registered office and headquarter in Bergen with ship management companies in Sevenoaks (UK), Singapore and Yuzhno-Sakhalinsk (Russia), which provides international presence. The company is listed on Oslo BÝrs with ticker RISH. Further information is available on the company's website www.gcrieber-shipping.no

 
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q1 2011 Report

Q1 2011 Presentation